The Internal Auditing Department, which reports directly to the President & CEO, monitors the appropriateness of business execution, as well as effectiveness of internal controls throughout the Group, and reports the audit results to the Board of Directors and the Audit & Supervisory Board.
Furthermore, auditing for specialized areas, i.e. security, environment, information systems, are mainly conducted by the relevant divisions.
Audit & Supervisory Board Members’ Audits and Initiatives toward Strengthening Their Functions
Shiseido’s Audit & Supervisory Board consists of two standing members and three highly independent external members. They monitor the legality and appropriateness of directors’ performance by attending Board of Directors meetings and other important meetings. Additionally, three audit & supervisory board members(external) offer advices, proposals and views from an independent perspective, based on their abundant experience and insight in their respective fields.
Representative directors and audit & supervisory board members meet regularly to exchange opinions on actions that will resolve corporate governance issues. The Company maintains a framework to ensure that audit & supervisory board members discharge their duties effectively, such as setting up a supporting group for audit & supervisory board members.
The Company's accounting audit is conducted by KPMG AZSA LLC, an accounting auditor pursuant to the Companies Act and the Financial Instruments and Exchange Act.
The names of certified public accountants that have conducted auditing and the name of auditing firm are as follows:
(As of the end of March, 2017)
Assistants for the accounting audits of the Company comprise certified public accountants and junior accountants.
Mutual Cooperation among Internal Audits, Audit & Supervisory Board Members’ Audits, and Accounting Audits
The Company, in order to improve the effectiveness and efficiency of the so-called three-pillar audit system (internal audits, audit & supervisory board members’ audits, and accounting audits), has been making efforts to enhance the mutual cooperation among the parties concerned by such means as arranging regular liaison meetings to report on audit plans and audit results as well as to conduct exchanges of opinions.